The Sunday attack in Nimroz province also wounded two police officers, said Hashim Noorzai, district governor of Khash Rod. Nimroz is a sparsely populated, arid province near Iran and Pakistan that Taliban fighters and smugglers often use as a staging area.
Also Monday, NATO said a roadside bomb killed a service member Sunday in southern Afghanistan.
The alliance gave no other details about the attack or the nationality of the service member.
It was the fourth coalition death on Sunday that NATO reported. A coalition helicopter crashed in eastern Afghanistan, killing two on board, and a service member was killed in an unspecified insurgent attack elsewhere in the country, NATO said.
More than 200 NATO troops have died this year in Afghanistan, many of them in southern provinces where Taliban fighters are trying to regain territory lost over the winter.
In the restive southern province of Kandahar, Afghan police staged a raid Sunday night in Arghistan district and killed two Taliban fighters, including a prominent insurgent commander of two provincial districts, Kandahar police chief Abdul Raziq said Monday.
The commander, who went by the name Sarajuddin, was a former military chief of Herat province during the Taliban's reign and recently led the insurgency in the districts of Arghistan and Spin Boldak.